Tips & Ideas

5 Tips How to Avoid Scams

Find out simple 5 tips how to avoid scams and stay secure.

The pace in which creators produce new investment programs and make money opportunities is really dizzying. It will not be a single day if I do not find a new investment opportunity.

Unfortunately, a large number of them can be classified as HYIPs or Scam, which will collapse after a while and most investors will lose their money.

Do you want to know 5 tips how to avoid scams and do not waste your hard earned money? Continue reading learn to recognize fraudulent offers at the first sight.

The sad truth is that most of the HYIP´s (High Yield Investment Programs) on the Internet are SCAMs.

They promise you impossible, incredibly high returns (up to 100% a day), show you exclusive investment schemes, but just to get you up, look professional and then get your money out of your pocket.

Money crisis

Though fraudulent systems are becoming more and more complex and they are masked on a variety of topics, some of the core points which leads us to dishonest intentions of creators remain the same.

It is therefore good to remember them and learn to recognize these SCAM artists and keep them away.

How to see HYIP at a distance

Often we can see HYIP programs promising and “guaranteeing” very above-average yields with minimal risk.

If you see monthly earnings in the order of 10 or more %, you should definitely be careful and stay away from thes opportunities.

There are also a few signs which help us identify if these opportunities are really fraudulent offers.

High Yeald Returns

  1. High Yeald Returns

We can very often see these programs offering daily returns with different “maturity” dates. Some of them offer an appreciation of more than 50% per day.

Some of them offer 7-days, 30-days or 60-day investment horizons, after which they will credit many times for your account.

Beware of such vows. Average stock appreciation of multinational companies on world stock exchanges is around 10% per year. For indexes or bonds it is similar.

As an example of classic scam, we can list the Amazing 5 project, which offered a 112% appreciation within 10 days

Another fraudulent project in the past was Nano Investment Technologies, which promised investors an increase of up to 1111% in 90 calendar days.

  1. Unclear method of achieving profits

As concern SCAM projects you will not be able to find clear information on how the investment funds are allocated and how they are being evaluated.

Fraudulent HYIPs will hide this information from investors. Not only that, these companies are hiding behind the anonymity of the internet, you know nothing about fund managers and how they manage your money.

Do not trust hidden secrets in HYIP

In these programs, fraudsters often pretend to have expertise, knowledge, abilities, or have a secret formula that allows them consistently achieving very above average profits.

However, these secret formulas and ingredients are often nothing but big lie.

  1. Use only Internet wallets except Paypal

It is common practice that most HYIPs require investors to register and open an account with one of the Internet wallet providers.

E-wallets are very popular among online scammers and widely used. This is because unlike credit card or bank transfer payments, it is not possible to cancel ewallet payment.

Another reason is that there are currently no authority regulating ewallets websites by state authorities. In many countries, these sites are required to be registered with the State Banking Regulator.

Internet wallets operating without the approval of the state bank regulator are another red exclamation mark.

  1. Referral program for recruiting new “investors”

The vast majority of companies offer another chance to make some extra money by attracting new investors to the program. Although the affiliate or refferal system is totally legal, it is abusive in the case of fraudulent HYIP programs for the recruitment of new members.

The only reason for such an incentive is that the company will get more, new money to keep the system above the water.

Fresh money is then used to pay the investors who joined the project before you. The entire structure collapses as the cash outflow exceeds the cash inflow. It is clear that the whole system can not work unless new investors come into the system.

Often the first victims of the HYIP fraud are those who first came to the project and are getting the most money for short time period at the top of the pyramid. But they also go out first.

Those who joined the project in the final stage will lose all the money to the last penny as soon as the system begins to collapse. Managers will disappear in the anonymity of the internet along with investors’ resources.

  1. Anonymity

Unfortunately, the anonymity of the internet is a good ground for the various cheerleaders who are trying to make you money. On the other hand, the information is not lost on the Internet too much and once the scammers are identified, their SCAMErs career is over.

We can at least try to verify the information about the projects and their owners in the register of domains and local business registers and looking around on web. But here too, you need to be careful, for example: in virtual office locations, anonymous domain registration, and so on.

For fraudulent HYIP programs we often do not even find any contact information. Forget the addresses, names of owners, agents, telephones, and similar standard information. For HYIP programs you will usually have to have a contact form or chat, which is usually not active.

Basic Tips on Avoiding SCAMs

First of all, do not sign up, sign up for and pay no hard earned money for a product or service that you do not fully understand. Do not believe promises that sound too good to be true. Usally they´re not…

We can also see abusers who are trying to influence our decisions, for example based on false user reviews and statements on their website. Stay away from them. Use your common sense.

Today, over 3 billion people worldwide can connect to the Internet. With one mouse click, anyone can easily get involved with these deceptive HYIP programs and lose money.

In today’s technology and information world, SCAM is lurking at every corner. If you are interested in investing or making money online, it is in your interest to be aware of the tricks that fraudsters use and keep away from them.

Now it´s up to you

I really hope that information will be of benefit to you and will help you to identify dubious investment offers if you came across one of them. The ability to know how to avoid scams is really crucial. If you think this article could help others avoid the hijackers of HYIP fraudsters, please share this article.

Comment and share your experience with Internet fraudsters.


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